Esterline Wins Multi-Year Defense Contract
OREANDA-NEWS. November 16, 2017. Esterline Corporation (NYSE: ESL) (www.esterline.com), a leading specialty manufacturer serving global aerospace and defense markets, today announced that its Defense Technologies group was recently selected by two prime contractors, American Ordnance and General Dynamics Ordnance and Tactical Systems, to supply critical sub-components for training ammunition on the U.S. Army’s new Day/Night/Thermal (DNT) 40mm grenade program. The multi-year contract is expected to exceed three million training units annually and last at least four years.
Esterline Defense Technologies improved the legacy product design with a payload upgrade for both the 40X46mm low-velocity Mk781 training round for hand-held launchers and the 40X53mm high-velocity Mk918 round fired from crew-served grenade machine guns. The new payload design enhances training realism, improves range safety, and is more environmentally responsible. Its unique signature after impact allows service members to simulate day, night and thermally-imaged tactical engagements. In addition, Esterline’s design significantly reduces the hazard of unexploded ordnance in the field during training exercises.
Curtis Reusser, Esterline’s Chief Executive Officer, said, "Our extensive experience in energetic defense materials combined with our systems integration expertise will bring better value to the Department of Defense and increased training realism to U.S. and allied warfighters. It’s also an important expansion from our battle-tested heritage in large-caliber ammunition into the adjacent medium-caliber market.”
The contract win is the culmination of a five-year development program. Esterline Defense Technologies completed the Engineering and Manufacturing Development phase of the competition in 2016, delivering more than 15,000 prototype payloads that were rigorously tested at the Army’s Aberdeen Proving Ground in Maryland. Esterline expects to begin low-rate initial production on the contract in late 2018.
Esterline Corporation is a leading worldwide supplier to the aerospace and defense industry specializing in three core areas: Advanced Materials; Avionics & Controls; and Sensors & Systems. With annual sales of approximately $2 billion, Esterline employs roughly 13,000 people worldwide.
Operations within the Advanced Materials segment focus on technologies including high-temperature-resistant materials and components used for a wide range of military and commercial aerospace purposes, and combustible ordnance and electronic warfare countermeasure products.